Why don't body corporate managers have a contractual duty to advise committees on legal compliance?
We noticed that caretaker agreements sometimes include a duty to advise the body corporate on compliance with relevant laws regarding maintenance of common property. However, we cannot find any similar obligation in the body corporate management contract to advise on legal compliance when handling body corporate matters.
If the committee gives instructions that conflict with the BCCM Act or other laws, and the body corporate manager does not warn the committee because it is not legally required, could this expose the body corporate to unnecessary legal risks? Why isn't "advice or warning to the body corporate on legal compliance” a standard part of the body corporate manager's service contract?
A good body corporate manager may be able to flag the issue with the committee and suggest a different path – but they would not be taking on responsibility for the committee's improper decision.
No, giving such advice is not the role or responsibility of the body corporate manager. Body corporate managers are often the first people to have the finger pointed at them, usually improperly, when something goes wrong. Their obligations extend to completing the duties set out in the administration agreement (which usually are at the instruction of the committee) and complying with the code of conduct in doing so.
The example used in the question is a good example of this issue. Relevantly, the example provides that it is the committee giving instructions that conflict with the BCCMA. Therefore, it should be the committee to bear those risks and not the body corporate manager. However, in those circumstances, a good body corporate manager may be able to flag the issue with the committee and suggest a different path – but they would not be taking on responsibility for the committee's improper decision.
Log in to your existing Lookupstrata Account to download the printable file.
Todd is an experienced property lawyer who heads up Mahoneys body corporate team.
Todd specialises in body corporate law and predominantly acts for bodies corporate, body corporate managers and lot owners on all matters affecting bodies corporate.
Todd is an active member of the Strata Community Association (Qld). In 2019 he was appointed to the Strata Community Association (Qld) legislation committee and assists in making submissions on behalf of the Strata Community Association (Qld) on issues such as legislative reform in body corporate law.
As Todd is also a body corporate committee member, he understands the day to day requirements of administering a body corporate.
Todd has a focus on achieving practical and commercial results for his clients and understands the market in which bodies corporate operate within.
Todd also provides body corporate managers, and other industry stakeholders, with presentations and training on matters affecting the body corporate industry.
Lookupstrata Directory
Looking for QLD Strata Specialist in your area? Search within our LookUpStrata Directory for the best list of contacts available
Search the directory
Comments
Log in to leave a comment